General Nice plots M&A strategy

Privately-held Chinese steel importer is keen to merge with a state-owned firm to access funding and capitalise on opportunities arising from the commodities slump.

Tianjin-based General Nice Resources, one of the largest iron ore traders in China, is in talks with state-owned enterprises on its home turf about merging or forming joint ventures to reduce funding costs, the company’s CEO Jaffe Lau told FinanceAsia in an interview.

The company is looking at potential acquisitions amid a slump in commodity prices. Merging with a state-owned enterprise would put it in a better position to raise funds.